Financial Term

EPS: Earning per share, Its defined as profit after tax by total number of equity shares issued.

P/E ratio : Price of share / Earning per share
The P/E ratio (price-to-earnings ratio) of a stock is a measure of the price paid for a share relative to the annual income or profit earned by the firm per share.[2] A higher P/E ratio means that investors are paying more for each unit of income

ADR: An American Depositary Receipt (or ADR) represents ownership in the shares of a foreign company trading on US financial markets. The stock of many non-US companies trades on US exchanges through the use of ADRs. ADRs enable US investors to buy shares in foreign companies without undertaking cross-border transactions. ADRs carry prices in US dollars, pay dividends in US dollars, and can be traded like the shares of US-based companies
GDR .
A bank certificate issued in more than one country for shares in a foreign company. The shares are held by a foreign branch of an international bank. The shares trade as domestic shares, but are offered for sale globally through the various bank branches.

Derivative
Derivatives are financial instruments whose value changes in response to the changes in underlying variables. The main types of derivatives are futures, forwards, options, and swaps.

1 comments:

2020 financial consulting 20/12/10 10:08 PM  

These are only few of the essential and the basic terminologies that circulate and normally used in the business industry. Furthermore, business related students should take note of these terms where they will be encountering then daily.

Related Posts Plugin for WordPress, Blogger...

Vocab Power Updated Daily

  • COBBLED - Repair or mend
  • ABHORRENCE - Hate coupled with disgust
  • INCUMBENCY - The term during which some position is held
  • MITIGATE -Lessen or to try to lessen the seriousness or extent of
  • dubious - Open to doubt or suspicion
  • FOSTERING - Encouragement; aiding the development of something
  • ELICIT- Call forth (emotions, feelings, and responses)
  • PLAUSIBLE - Apparently reasonable and valid, and truthful
  • FORGE - Move ahead steadily
  • BOLSTER (V)-Support and strengthen
  • ECCENTRIC- A person with an unusual or odd personality
  • PATRONAGE - The act of providing approval and support
  • IMPERVIOUS - Not admitting of passage or capable of being affected

Updates from my other Blogs

badge